India’s ‘trading margin’ for every kilowatt of power will be Rs 0.0595
Published : 11 Jun 2024, 05:40 PM
Bangladesh is set to import electricity from Nepal at Tk 8.17 per unit.
The Cabinet Committee on Government Purchase approved the import of power from Nepal through direct purchase on Tuesday.
In the briefing after the meeting, Mahmudul Hossain Khan, secretary of the Coordination & Reforms Department of the Cabinet, said that permission has been given to buy electricity from Nepal at a 'negotiated' price of Tk 8.17.
The electricity will be bought for about Tk 1.3 billion per year, totalling around Tk 6.5 billion over five years. The power will be brought into Bangladesh at Kushtia’s Bheramara using the Indian grid.
Six years ago, Bangladesh started negotiating to import electricity from Nepal. To that end, the two countries signed a Memorandum of Understanding in 2018. The tripartite talks on how to bring Nepal’s hydropower into the country through the Indian grid carried on for a long time.
On Dec 7, a proposal to import hydropower through India through direct purchase from Nepal was approved by the Cabinet Committee on Economic Affairs. This time, the government purchase committee approved it.
Secretary Mahmudul said, "Now the Nepal Electricity Authority, India's NTPC Vidyut Vyapar Nigam Limited and Bangladesh Power Development Board will make a tripartite agreement. Because the electricity is from Nepal, it will come to Bangladesh through India and be connected to the national grid. India's transmission lines have to be used."
He said that India's 'trading margin' for every kilowatt of electricity will be Rs 0.0595.
“The energy price per unit is 6.40 US cents. The transmission charge is not yet finalised. It will be as per India’s regulations."
He said that a final agreement will be reached with Nepal regarding the purchase soon.
"The honourable prime minister probably has a visit to Nepal coming. The final agreement will be signed during that visit. Then the electricity will start coming," said the secretary.